10.02.202614:24:34UTC+00Gold Near 2-Week Highs

Gold rose above $5,070 per ounce on Tuesday, nearing a two-week high, as the latest US data bolstered expectations of a more accommodative Federal Reserve. A series of softer activity indicators has already shifted interest rate pricing: December retail sales unexpectedly stalled, the GDP control group edged down 0.1%, job openings fell to their lowest level since 2020, and private payroll growth came in below forecasts. Taken together, these developments point to cooling demand and easing inflation pressures.

This data has tempered interest rate expectations and strengthened the case for policy easing later this year, improving the fundamental backdrop for non-yielding bullion. Official sector demand also remains a key structural pillar of support, with China’s central bank extending its gold-buying streak for a fifteenth consecutive month in January. At the same time, geopolitical risks continue to underpin safe-haven flows, as tensions between the US and Iran persist despite tentative diplomatic progress, helping to limit downside risks for gold.